It’s 2017: You Shouldn’t Be Paying Fees On Your Bank Account

In today’s competitive environment, transaction fees are becoming a thing of the past as banks battle it out to win over customers. Canstar looks at the trends in everyday transaction fees and how you can avoid paying them.

As a recent survey from the RBA showed, Australians are increasingly becoming more reliant on digital payments, making transaction accounts important for many consumers. With so many options available when it comes to storing your money, what should you look for?

As Canstar unveils the winners of the 2017 Everyday Banking Award, we look at the industry trends to help you understand how your bank compares. The major find from this year is that if you are incurring any account-keeping or transaction fees, you’re probably paying more than you need to.

Transaction account trends for 2017

Out of the 127 transaction accounts we researched, 70 have no monthly account-keeping fee and 28 waive the monthly fee when a deposit is made into the account (ranging from $500-$2,500 each month). We also found 47 accounts don’t charge fees for common transaction types, such as internet transfers, eftpos transactions, direct debits and other electronic transaction types.

How does your transaction account measure up? Use the Canstar website to compare.

The biggest shake-up to transaction account fees this year has been the decision by the major four banks to drop ATM fees charged to consumers who bank with other institutions.

CBA, Westpac, ANZ and NAB banks recently made the call to abolish the fees, with other institutions widely expected to follow suit. However, you may still find yourself paying to use an ATM if it is not part of one of the networks which no longer charges fees, with third-party ATMs still likely to charge a direct fee for the convenience that they provide.

What fees are charged on transaction accounts?

Not all transaction accounts are created equal, making it essential to compare your options to find the best deal for you. Some common fees to look out for on various transaction accounts include:

Check out our comparison table below which features a snapshot of the current low fee transaction accounts. Please note that this table has been formulated based on a High transactor in NSW, with results sorted by star rating, followed by monthly fee.

How to say goodbye to banking fees

Firstly, make sure you check your statements to determine if you are being charged banking fees. There could be fees you weren’t aware of and could avoid, such as staff-assisted phone transactions and branch withdrawals.

Becoming familiar with these charges can help you mitigate them in the future by adjusting your behaviour by using internet banking or getting cash out at the supermarket instead of using ATMs.

Some banks offer to waive fees on accounts for certain consumers, such as mortgage holders, students and pensions so be sure to ask your bank if you qualify. If you don’t, why not shop around to see if there is a better deal available? For more tips, read our article about avoiding fees with your transaction account.

Compare Transaction Accounts

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This advice is general and has not taken into account your objectives, financial situation, or needs. Consider whether this advice is right for you. Consider the product disclosure statement (PDS) before making any financial decision. For more information, read Canstar’s Financial Services Guide (FSG).

If you decided to apply for a savings account, you will deal directly with a financial institution, and not with Canstar. Rates and product information should be confirmed with the relevant financial institution. For more information, read our detailed disclosure, important notes and additional information.

The inclusions mentioned represent a selection of what is covered at the time of writing. Additional terms and conditions may apply to different features. Additional fees may apply to the product. CANSTAR is not making any suggestion or recommendation to you about this product. Please ensure that you read the product disclosure statement to determine all the current options and inclusions for the product you are considering.

The Star Ratings in this table were awarded in April 2018. The search results do not include all providers and may not compare all features relevant to you. View the Canstar Savings & Transaction Accounts Star Rating Report. The rating shown is only one factor to take into account when considering products.

Sponsored products are paid advertisements and do not include all providers. Canstar receives a fee for referring you to the advertiser. Canstar is not giving you advice in relation to sponsored products.

This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you. Consider the product disclosure statement before making a purchase decision. Canstar provides an information service. It is not a credit provider, and in giving you information about credit products Canstar is not making any suggestion or recommendation to you about a particular credit product. Statistics referenced on this page have been verified by Canstar Research. Research provided by Canstar Research AFSL and Australian Credit Licence No. 437917.